HomeMy WebLinkAboutItem 4.02 Solid Waste Franchise Audits
CITY CLERK
File # D[6]rl][Q]-~~
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: February 20, 2007
SUBJECT:
Solid Waste Franchise Audits
Report Prepared by Roger Bradley, Administrative Analyst
ATTACHMENTS:
1) Budget Change Form
2) Resolution approving Agreement with R3 Consulting Group
RECOMMENDATION: ~/?/V~''\.-1) Approve the budget change in the amount of$4,860.
\ 1./ 2) Adopt the resolution approving the Agreement with R3
sg Consulting Group.
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FINANCIAL STATEMENT: Funds were allocated for this project in the 200612007 Budget in the
amount of $36,000 ($18,000 from the General Fund and $18,000 from the Measure D Fund). The cost of
services for the requested tasks is $35,050. As part of the RFP, Staff included an optional service to audit
the City's disposal facility (Altamont Landfill). The cost of services for the additional audit totaled
$5,810. As a result, the total cost of audit services is $40,860. Therefore, a Budget change in the amount
of $4,860 is needed to award this contract with the optional service included. The additional $4,860 will
be allocated from existing Measure D revenues.
DESCRIPTION: In December of 2006, Staff solicited proposals for an audit of the
City's exclusive (residential and commercial garbage) and non-exclusive (construction and demolition
debris - "C&D") solid waste franchises. This item has been designated a high priority task in the Fiscal
Year 200612007 City Council Goals & Objectives Program. In response to this request, Staff received one
proposal from R3 Consulting Group.
The goal ofthis audit is to determine the accuracy of diversion reporting to the City by each franchisee as
well as the accuracy of the franchise fee submittal. In addition to these goals, Staff included an optional
objective to audit the City's disposal facility (Altamont Landfill). This task was included with the intent of
auditing diversion, disposal, and tonnage assignment activities across sectors (hauler and disposer),
thereby, ensuring that not only are the waste haulers using appropriate methodologies to divert materials
and assign disposal tonnages to the City, but that the landfill is also employing appropriate measures to
COPY TO:
Ric Hutchinson, R3 Consulting Group
Page 1 of2
ITEM NO. M
F:\Council\Agenda Statements\as-Waste Audit.doc
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assign disposal tonnages and divert materials from disposal. Specifically, using the guidelines set forth in
the franchise agreements, the audit will:
. Verify franchise revenues collected by each franchisee, and evaluate the accuracy of franchise fees
submitted to the City in accordance with the terms of the appropriate franchise agreement.
. Review the billing procedures for the exclusive franchise agreement to ensure accuracy of charges
to residents, which have services provided above the "base level".
· Review operating statistics of each franchisee to gain an understanding of past historical trends as
they relate to future diversion rates and franchise fee submittal projections.
. Review the billing procedures for the exclusive franchise agreement to ensure accuracy of charges
to commercial customers and those residents not billed by the City on the tax bill.
. Review the method used by each franchise to quantify their disposal, diversion, and recycling
percentages.
. Prepare a technical report, assessing the reasonableness and accuracy of methods used to quantify
diversion rates as well as the accuracy and appropriateness of franchise fee submittals.
. Determine and document the disposal/diversion of materials by material type.
Optional Task Objectives
. Review the accuracy of gatehouse procedures used to assign disposal tonnages to the City.
. Review and assess the reasonableness and accuracy ofthe methodologies used to quantify
diversion rates.
. Review and assess the methodologies used to recover recyclable or compostable materials.
. Review and assess the accuracy of the disposal reporting procedures.
R3 Consulting Group has developed and submitted a proposal consistent with these objectives and within
the timeline established within the 200612007 Goals & Objectives Program.
RECOMMENDATION: Staff recommends that the City Council approve the budget change
in the amount of $4,860 and adopt the Resolution approving the Consultant Services Agreement with R3
Consulting Group.
COPY TO:
Ric Hutchinson, R3 Consulting Group
Page 2 of2
ITEM NO.
F:\Council\Agenda Statements\as-Waste Audit.doc
CITY OF DUBLIN
BUDGET CHANGE FORM
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CHANGE FORM #:
New Appropriations (City Council Approval Required):
X From Unappropriated Reserves Fund #
From New Revenues
Budget Transfers:
From Budgeted Contingent Reserve (1080-799.000)
Within Same Department Activity
Between Departments (City Council Approval Required)
Other
Name:
Name: Franchise Hauler Audit
$4,860
Account:
Account: 224.50200.740.000
Name:
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Account:
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Account:
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Account:
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Name:
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Account:
Account:
Name:
Name:
Account:
Account:
Total
Total
$4,860
Reason for Budget Change: This budget change is being submitted to pay for an increase in consultant services, and will fund
the inclusion of an additional task in the solid waste franchise audits. The additional task raises the cost above the budgeted
$36,000. The increased service is a review of diversion activities at the City's disposal service provider.
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City Manager:
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Mayor:
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Signature
Posted By:
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Signature
F:\Council\Budget Change Form\budget change form-waste audit.xls
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2-20-01
ATTACHMENT 1
RESOLUTION NO. - 2007
J.
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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APPROVING AN AGREEMENT WITH R3 CONSULTING GROUP FOR AUDITING
SERVICES OF THE CITY'S SOLID WASTE FRANCHISES
WHEREAS, the 2006/2007 Goals & Objectives Program contains a high priority objective to
conduct an audit ofthe City's Exclusive and Non-Exclusive Solid Waste Franchises; and
WHEREAS, the franchise audits will help to ensure accurate diversion reporting and accurate
submittal of franchise fees paid to the City; and
WHEREAS, on November 21,2006, Council did approve the solicitation of a Request for
Proposal (RFP) to conduct said audits; and
WHEREAS, to take advantage of cost savings associated with the above services, an audit of the
City' disposal service provider was included in the RFP; and
WHEREAS, the City solicited proposals from qualified firms to provide the aforementioned audit
services; and
WHEREAS, one (1) firm, R3 Consulting Group, submitted a proposal to provide auditing
services of the City's solid waste franchises; and
WHEREAS, R3 Consulting Group has shown that it has the ability to perform the auditing
services required; and
WHEREAS, it is proposed to execute a Consulting Services Agreement between the City of
Dublin and R3 Consulting Group; and
WHEREAS, under said agreement, the consultant shall be compensated for work performed
according to the hourly rates specified in the agreement or as negotiated for the term of the agreement
through June 30, 2007, not to exceed a total amount of$40,860; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby approve the agreement with R3 Consulting Group attached hereto.
BE IT FURTHER RESOLVED that the City Manager is authorized to execute the agreement.
PASSED, APPROVED AND ADOPTED this 20th day of February, 2007.
ATTACHMENT 2
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
F: I CouncillResolutions IRESOL UTION- Waste Audit.doc
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CONSULTING SERVICES AGREEMENT BETWEEN
THE CITY OF DUBLIN AND
R3 CONSULTING GROUP
THIS AGREEMENT for consulting services is made by and between the City of Dublin ("City") and
R3 Consulting Group ("Consultant") as of February 20,2007.
Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant
shall provide to City the services described in the Scope of Work attached as Exhibit A at the time and
place and in the manner specified therein. In the event of a conflict in or inconsistency between the terms
of this Agreement and Exhibit A, the Agreement shall prevail.
1.1 Term of Services. The term of this Agreement shall begin on the date first noted above
and shall end on June 30,2007, the date of completion specified in Exhibit A, and
Consultant shall complete the work described in Exhibit A prior to that date, unless the
term of the Agreement is otherwise terminated or extended, as provided for in Section 8.
The time provided to Consultant to complete the services required by this Agreement shall
not affect the City's right to terminate the Agreement, as provided for in Section 8.
1.2 Standard of Performance. Consultant shall perform all services required pursuant to this
Agreement in the manner and according to the standards observed by a competent
practitioner of the profession in which Consultant is engaged in the geographical area in
which Consultant practices its profession. Consultant shall prepare all work products
required by this Agreement in a substantial, first-class manner and shall conform to the
standards of quality normally observed by a person practicing in Consultant's profession.
1.3 Assianment of Personnel. Consultant shall assign only competent personnel to perform
services pursuant to this Agreement. In the event that City, in its sole discretion, at any
time during the term of this Agreement, desires the reassignment of any such persons,
Consultant shall, immediately upon receiving notice from City of such desire of City,
reassign such person or persons.
1.4 Time. Consultant shall devote such time to the performance of services pursuant to this
Agreement as may be reasonably necessary to meet the standard of performance
provided in Section 1.1 above and to satisfy Consultant's obligations hereunder.
Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed $40,860,
notwithstanding any contrary indications that may be contained in Consultant's proposal, for services to be
performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this
Agreement and Consultant's proposal, attached as Exhibit A, regarding the amount of compensation, the
Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the
time and in the manner set forth herein. The payments specified below shall be the only payments from
City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to
City in the manner specified herein. Except as specifically authorized by City, Consultant shall not bill City
for duplicate services performed by more than one person.
Consulting Services Agreement between
City of Dublin and R3 Consulting Group
February 20, 2007
Page 1 of 13
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Consultant and City acknowledge and agree that compensation paid by City to Consultant under this
Agreement is based upon Consultant's estimated costs of providing the services required hereunder,
including salaries and benefits of employees and subcontractors of Consultant. Consequently, the parties
further agree that compensation hereunder is intended to include the costs of contributions to any pensions
and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City
therefore has no responsibility for such contributions beyond compensation required under this Agreement.
2.1 Invoices. Consultant shall submit invoices, not more often than once a month during the
term of this Agreement, based on the cost for services performed and reimbursable costs
incurred prior to the invoice date. Invoices shall contain the following information:
· Serial identifications of progress bills; Le., Progress Bill No.1 for the first invoice,
etc.;
· The beginning and ending dates of the billing period;
· A Task Summary containing the original contract amount, the amount of prior
billings, the total due this period, the balance available under the Agreement, and
the percentage of completion;
· At City's option, for each work item in each task, a copy of the applicable time
entries or time sheets shall be submitted showing the name of the person doing
the work, the hours spent by each person, a brief description of the work, and
each reimbursable expense;
· The total number of hours of work performed under the Agreement by Consultant
and each employee, agent, and subcontractor of Consultant performing services
hereunder, as well as a separate notice when the total number of hours of work by
Consultant and any individual employee, agent, or subcontractor of Consultant
reaches or exceeds 800 hours, which shall include an estimate of the time
necessary to complete the work described in Exhibit A;
· The Consultant's signature.
2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for
services satisfactorily performed, and for authorized reimbursable costs incurred. City
shall have 30 days from the receipt of an invoice that complies with all of the requirements
above to pay Consultant.
2.3 Final Payment. City shall pay the last 10% of the total sum due pursuant to this
Agreement within sixty (60) days after completion of the services and submittal to City of a
final invoice, if all services required have been satisfactorily performed.
2.4 Total Payment. City shall pay for the services to be rendered by Consultant pursuant to
this Agreement. City shall not pay any additional sum for any expense or cost whatsoever
incurred by Consultant in rendering services pursuant to this Agreement. City shall make
no payment for any extra, further, or additional service pursuant to this Agreement.
Consulting Services Agreement between
City of Dublin and R3 Consulting Group
February 20, 2007
Page 2 of 13
1.9 '7:;7-
In no event shall Consultant submit any invoice for an amount in excess of the maximum
amount of compensation provided above either for a task or for the entire Agreement,
unless the Agreement is modified prior to the submission of such an invoice by a properly
executed change order or amendment.
2.5 Hourly Fees. Fees for work performed by Consultant on an hourly basis shall not exceed
the amounts shown on the following fee schedule:
2.6 Reimbursable Expenses. Expenses not listed below are not chargeable to City.
Reimbursable expenses are included in the total amount of compensation provided under
this Agreement that shall not be exceeded.
2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes
incurred under this Agreement and any similar federal or state taxes.
2.8 Payment upon Termination. In the event that the City or Consultant terminates this
Agreement pursuant to Section 8, the City shall compensate the Consultant for all
outstanding costs and reimbursable expenses incurred for work satisfactorily completed as
of the date of written notice of termination. Consultant shall maintain adequate logs and
timesheets in order to verify costs incurred to that date.
2.9 Authorization to Perform Services. The Consultant is not authorized to perform any
services or incur any costs whatsoever under the terms of this Agreement until receipt of
authorization from the Contract Administrator.
Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole
cost and expense, provide all facilities and equipment that may be necessary to perform the services
required by this Agreement. City shall make available to Consultant only the facilities and equipment listed
in this section, and only under the terms and conditions set forth herein.
City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be
reasonably necessary for Consultant's use while consulting with City employees and reviewing records and
the information in possession of the City. The location, quantity, and time of furnishing those facilities shall
be in the sole discretion of City. In no event shall City be obligated to furnish any facility that may involve
incurring any direct expense, including but not limited to computer, long-distance telephone or other
communication charges, vehicles, and reproduction facilities.
Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement,
Consultant, at its own cost and expense, shall procure "occurrence coverage" insurance against claims for
injuries to persons or damages to property that may arise from or in connection with the performance of the
work hereunder by the Consultant and its agents, representatives, employees, and subcontractors.
Consultant shall provide proof satisfactory to City of such insurance that meets the requirements of this
section and under forms of insurance satisfactory in all respects to the City. Consultant shall maintain the
insurance policies required by this section throughout the term of this Agreement. The cost of such
insurance shall be included in the Consultant's bid. Consultant shall not allow any subcontractor to
Consulting Services Agreement between
City of Dublin and R3 Consulting Group
February 20, 2007
Page 3 of 13
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commence work on any subcontract until Consultant has obtained all insurance required herein for the
subcontractor(s) and provided evidence thereof to City. Verification of the required insurance shall be
submitted and made part of this Agreement prior to execution.
4.1 Workers' Compensation. Consultant shall, at its sole cost and expense, maintain
Statutory Workers' Compensation Insurance and Employer's Liability Insurance for any
and all persons employed directly or indirectly by Consultant. The Statutory Workers'
Compensation Insurance and Employer's Liability Insurance shall be provided with limits of
not less than ONE MILLION DOLLARS ($1,000,000.00) per accident. In the alternative,
Consultant may rely on a self-insurance program to meet those requirements, but only if
the program of self-insurance complies fully with the provisions of the California Labor
Code. Determination of whether a self-insurance program meets the standards of the
Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if
insurance is provided, or the Consultant, if a program of self-insurance is provided, shall
waive all rights of subrogation against the City and its officers, officials, employees, and
volunteers for loss arising from work performed under this Agreement.
An endorsement shall state that coverage shall not be suspended, voided, canceled by
either party, reduced in coverage or in limits, except after thirty (30) days' prior written
notice by certified mail, return receipt requested, has been given to the City.
4.2 Commercial General and Automobile Liabilitv Insurance.
4.2.1 General reauirements. Consultant, at its own cost and expense, shall maintain
commercial general and automobile liability insurance for the term of this
Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00)
per occurrence, combined single limit coverage for risks associated with the work
contemplated by this Agreement. If a Commercial General Liability Insurance or an
Automobile Liability form or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to the work to be
performed under this Agreement or the general aggregate limit shall be at least
twice the required occurrence limit. Such coverage shall include but shall not be
limited to, protection against claims arising from bodily and personal injury,
including death resulting therefrom, and damage to property resulting from
activities contemplated under this Agreement, including the use of owned and non-
owned automobiles.
4.2.2 Minimum scope of coverage. Commercial general coverage shall be at least as
broad as Insurance Services Office Commercial General Liability occurrence form
CG 0001 (ed. 11/88) or Insurance Services Office form number GL 0002 (ed. 1/73)
covering comprehensive General Liability and Insurance Services Office form
number GL 0404 covering Broad Form Comprehensive General Liability.
Automobile coverage shall be at least as broad as Insurance Services Office
Automobile Liability form CA 0001 (ed. 12/90) Code 1 ("any auto"). No
endorsement shall be attached limiting the coverage.
Consulting Services Agreement between
City of Dublin and R3 Consulting Group
February 20, 2007
Page 4 of 13
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4.2.3 Additional requirements. Each of the following shall be included in the
insurance coverage or added as an endorsement to the policy:
a. City and its officers, employees, agents, and volunteers shall be covered
as insureds with respect to each of the following: liability arising out of
activities performed by or on behalf of Consultant, including the insured's
general supervision of Consultant; products and completed operations of
Consultant; premises owned, occupied, or used by Consultant; and
automobiles owned, leased, or used by the Consultant. The coverage
shall contain no special limitations on the scope of protection afforded to
City or its officers, employees, agents, or volunteers.
b. The insurance shall cover on an occurrence or an accident basis, and not
on a claims-made basis.
c. An endorsement must state that coverage is primary insurance with
respect to the City and its officers, officials, employees and volunteers,
and that no insurance or self-insurance maintained by the City shall be
called upon to contribute to a loss under the coverage.
d. Any failure of CONSULTANT to comply with reporting provisions of the
policy shall not affect coverage provided to CITY and its officers,
employees, agents, and volunteers.
e. An endorsement shall state that coverage shall not be suspended, voided,
canceled by either party, reduced in coverage or in limits, except after
thirty (30) days' prior written notice by certified mail, return receipt
requested, has been given to the City.
4.3 Professional Liabilitv Insurance. Consultant, at its own cost and expense, shall
maintain for the period covered by this Agreement professional liability insurance for
licensed professionals performing work pursuant to this Agreement in an amount not less
than ONE MILLION DOLLARS ($1,000,000) covering the licensed professionals' errors
and omissions.
4.3.1 Any deductible or self-insured retention shall not exceed $150,000 per claim.
4.3.2 An endorsement shall state that coverage shall not be suspended, voided,
canceled by either party, reduced in coverage or in limits, except after thirty (30)
days' prior written notice by certified mail, return receipt requested, has been given
to the City.
4.3.3 The policy must contain a cross liability or severability of interest clause.
Consulting Services Agreement between
City of Dublin and R3 Consulting Group
February 20,2007
Page 5 of 13
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4.3.4 The following provisions shall apply if the professional liability coverages are
written on a claims-made form:
a. The retroactive date of the policy must be shown and must be before the
date of the Agreement.
b. Insurance must be maintained and evidence of insurance must be
provided for at least five years after completion of the Agreement or the
work, so long as commercially available at reasonable rates.
c. If coverage is canceled or not renewed and it is not replaced with another
claims-made policy form with a retroactive date that precedes the date of
this Agreement, Consultant must provide extended reporting coverage for
a minimum of five years after completion of the Agreement or the work.
The City shall have the right to exercise, at the Consultant's sole cost and
expense, any extended reporting provisions of the policy, if the Consultant
cancels or does not renew the coverage.
d. A copy of the claim reporting requirements must be submitted to the City
prior to the commencement of any work under this Agreement.
4.4 All Policies Requirements.
4.4.1 Acceptability of insurers. All insurance required by this section is to be placed
with insurers with a Bests' rating of no less than A:VII.
4.4.2 Verification of coverage. Prior to beginning any work under this Agreement,
Consultant shall furnish City with certificates of insurance and with original
endorsements effecting coverage required herein. The certificates and
endorsements for each insurance policy are to be signed by a person authorized
by that insurer to bind coverage on its behalf. The City reserves the right to
require complete, certified copies of all required insurance policies, at any time.
4.4.3 Subcontractors. Consultant shall include all subcontractors as insureds under its
policies or shall furnish separate certificates and endorsements for each
subcontractor. All coverages for subcontractors shall be subject to all of the
requirements stated herein.
4.4.4 Variation. The City may approve a variation in the foregoing insurance
requirements, upon a determination that the coverages, scope, limits, and forms of
such insurance are either not commercially available, or that the City's interests
are otherwise fully protected.
Consulting Services Agreement between
City of Dublin and R3 Consulting Group
February 20, 2007
Page 6 of 13
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4.4.5 Deductibles and Self.lnsured Retentions. Consultant shall disclose to and
obtain the approval of City for the self-insured retentions and deductibles before
beginning any of the services or work called for by any term of this Agreement.
During the period covered by this Agreement, only upon the prior express written
authorization of Contract Administrator, Consultant may increase such deductibles
or self-insured retentions with respect to City, its officers, employees, agents, and
volunteers. The Contract Administrator may condition approval of an increase in
deductible or self-insured retention levels with a requirement that Consultant
procure a bond, guaranteeing payment of losses and related investigations, claim
administration, and defense expenses that is satisfactory in all respects to each of
them.
4.4.6 Notice of Reduction in CoveraQe. In the event that any coverage required by
this section is reduced, limited, or materially affected in any other manner,
Consultant shall provide written notice to City at Consultant's earliest possible
opportunity and in no case later than five days after Consultant is notified of the
change in coverage.
4.5 Remedies. In addition to any other remedies City may have if Consultant fails to provide
or maintain any insurance policies or policy endorsements to the extent and within the time
herein required, City may, at its sole option exercise any of the following remedies, which
are alternatives to other remedies City may have and are not the exclusive remedy for
Consultant's breach:
· Obtain such insurance and deduct and retain the amount of the premiums for such
insurance from any sums due under the Agreement;
· Order Consultant to stop work under this Agreement or withhold any payment that
becomes due to Consultant hereunder, or both stop work and withhold any payment,
until Consultant demonstrates compliance with the requirements hereof; and/or
· Terminate this Agreement.
Section 5. INDEMNIFICATION AND CONSULTANT'S RESPONSIBILITIES. Consultant shall
indemnify, defend with counsel selected by the City, and hold harmless the City and its officials, officers,
employees, agents, and volunteers from and against any and all losses, liability, claims, suits, actions,
damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to
property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole
or in part, by the willful misconduct or negligent acts or omissions of Consultant or its employees,
subcontractors, or agents, by acts for which they could be held strictly liable, or by the quality or character
of their work. The foregoing obligation of Consultant shall not apply when (1) the injury, loss of life, damage
to property, or violation of law arises wholly from the negligence or willful misconduct of the City or its
officers, employees, agents, or volunteers and (2) the actions of Consultant or its employees,
subcontractor, or agents have contributed in no part to the injury, loss of life, damage to property, or
Consulting Services Agreement between
City of Dublin and R3 Consulting Group
February 20, 2007
Page 7 of 13
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violation of law. It is understood that the duty of Consultant to indemnify and hold harmless includes the
duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance by City of insurance
certificates and endorsements required under this Agreement does not relieve Consultant from liability
under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall
apply to any damages or claims for damages whether or not such insurance policies shall have been
determined to apply. By execution of this Agreement, Consultant acknowledges and agrees to the
provisions of this Section and that it is a material element of consideration.
In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services
under this Agreement is determined by a court of competent jurisdiction or the California Public Employees
Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall
indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions
for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the
payment of any penalties and interest on such contributions, which would otherwise be the responsibility of
City.
Section 6.
6.1
6.2
Section 7.
7.1
7.2
STATUS OF CONSULTANT.
Independent Contractor. At all times during the term of this Agreement, Consultant shall
be an independent contractor and shall not be an employee of City. City shall have the
right to control Consultant only insofar as the results of Consultant's services rendered
pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3;
however, otherwise City shall not have the right to control the means by which Consultant
accomplishes services rendered pursuant to this Agreement. Notwithstanding any other
City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant
and any of its employees, agents, and subcontractors providing services under this
Agreement shall not qualify for or become entitled to, and hereby agree to waive any and
all claims to, any compensation, benefit, or any incident of employment by City, including
but not limited to eligibility to enroll in the California Public Employees Retirement System
(PERS) as an employee of City and entitlement to any contribution to be paid by City for
employer contributions and/or employee contributions for PERS benefits.
Consultant No Aaent. Except as City may specify in writing, Consultant shall have no
authority, express or implied, to act on behalf of City in any capacity whatsoever as an
agent. Consultant shall have no authority, express or implied, pursuant to this Agreement
to bind City to any obligation whatsoever.
LEGAL REQUIREMENTS.
Governina Law. The laws of the State of California shall govern this Agreement.
Compliance with Applicable Laws. Consultant and any subcontractors shall comply with
all laws applicable to the performance of the work hereunder.
Consulting Services Agreement between
City of Dublin and R3 Consulting Group
February 20, 2007
Page 8 of 13
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7.3 Other Governmental ReQulations. To the extent that this Agreement may be funded by
fiscal assistance from another governmental entity, Consultant and any subcontractors
shall comply with all applicable rules and regulations to which City is bound by the terms of
such fiscal assistance program.
7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and
its employees, agents, and any subcontractors have all licenses, permits, qualifications,
and approvals of whatsoever nature that are legally required to practice their respective
professions. Consultant represents and warrants to City that Consultant and its
employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect
at all times during the term of this Agreement any licenses, permits, and approvals that are
legally required to practice their respective professions. In addition to the foregoing,
Consultant and any subcontractors shall obtain and maintain during the term of this
Agreement valid Business Licenses from City.
7.5 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the
basis of a person's race, religion, color, national origin, age, physical or mental handicap or
disability, medical condition, marital status, sex, or sexual orientation, against any
employee, applicant for employment, subcontractor, bidder for a subcontract, or participant
in, recipient of, or applicant for any services or programs provided by Consultant under this
Agreement. Consultant shall comply with all applicable federal, state, and local laws,
policies, rules, and requirements related to equal opportunity and nondiscrimination in
employment, contracting, and the provision of any services that are the subject of this
Agreement, including but not limited to the satisfaction of any positive obligations required
of Consultant thereby.
Consultant shall include the provisions of this Subsection in any subcontract approved by
the Contract Administrator or this Agreement.
Section 8.
TERMINATION AND MODIFICATION.
8.1
Termination. City may cancel this Agreement at any time and without cause upon written
notification to Consultant.
Consultant may cancel this Agreement upon 30 days' written notice to City and shall
include in such notice the reasons for cancellation.
In the event of termination, Consultant shall be entitled to compensation for services
performed to the effective date of termination; City, however, may condition payment of
such compensation upon Consultant delivering to City any or all documents, photographs,
computer software, video and audio tapes, and other materials provided to Consultant or
prepared by or for Consultant or the City in connection with this Agreement.
8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this
Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a
Consulting Services Agreement between
City of Dublin and R3 Consulting Group
February 20, 2007
Page 9 of 13
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written amendment to this Agreement, as provided for herein. Consultant understands and
agrees that, if City grants such an extension, City shall have no obligation to provide
Consultant with compensation beyond the maximum amount provided for in this
Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no
obligation to reimburse Consultant for any otherwise reimbursable expenses incurred
during the extension period.
8.3 Amendments. The parties may amend this Agreement only by a writing signed by all the
parties.
8.4 Assi~nment and Subcontractin~. City and Consultant recognize and agree that this
Agreement contemplates personal performance by Consultant and is based upon a
determination of Consultant's unique personal competence, experience, and specialized
personal knowledge. Moreover, a substantial inducement to City for entering into this
Agreement was and is the professional reputation and competence of Consultant.
Consultant may not assign this Agreement or any interest therein without the prior written
approval of the Contract Administrator. Consultant shall not subcontract any portion of the
performance contemplated and provided for herein, other than to the subcontractors noted
in the proposal, without prior written approval of the Contract Administrator.
8.5 Survival. All obligations arising prior to the termination of this Agreement and all
provisions of this Agreement allocating liability between City and Consultant shall survive
the termination of this Agreement.
8.6 Options upon Breach bv Consultant. If Consultant materially breaches any of the terms
of this Agreement, City's remedies shall included, but not be limited to, the following:
8.6.1 Immediately terminate the Agreement;
8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any
other work product prepared by Consultant pursuant to this Agreement;
8.6.3 Retain a different consultant to complete the work described in Exhibit A not
finished by Consultant; or
8.6.4 Charge Consultant the difference between the cost to complete the work
described in Exhibit A that is unfinished at the time of breach and the amount that
City would have paid Consultant pursuant to Section 2 if Consultant had
completed the work.
Section 9.
KEEPING AND STATUS OF RECORDS.
9.1
Records Created as Part of Consultant's Performance. All reports, data, maps,
models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications,
records, files, or any other documents or materials, in electronic or any other form, that
Consulting Services Agreement between
City of Dublin and R3 Consulting Group
February 20, 2007
Page 10 of 13
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Consultant prepares or obtains pursuant to this Agreement and that relate to the matters
covered hereunder shall be the property of the City. Consultant hereby agrees to deliver
those documents to the City upon termination of the Agreement. It is understood and
agreed that the documents and other materials, including but not limited to those described
above, prepared pursuant to this Agreement are prepared specifically for the City and are
not necessarily suitable for any future or other use. City and Consultant agree that, until
final approval by City, all data, plans, specifications, reports and other documents are
confidential and will not be released to third parties without prior written consent of both
parties.
9.2 Consultant's Books and Records. Consultant shall maintain any and all ledgers, books
of account, invoices, vouchers, canceled checks, and other records or documents
evidencing or relating to charges for services or expenditures and disbursements charged
to the City under this Agreement for a minimum of three (3) years, or for any longer period
required by law, from the date of final payment to the Consultant to this Agreement.
9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this
Agreement requires Consultant to maintain shall be made available for inspection, audit,
and/or copying at any time during regular business hours, upon oral or written request of
the City. Under California Government Code Section 8546.7, if the amount of public funds
expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the
Agreement shall be subject to the examination and audit of the State Auditor, at the
request of City or as part of any audit of the City, for a period of three (3) years after final
payment under the Agreement.
Section 10 MISCELLANEOUS PROVISIONS.
10.1 Attorneys' Fees. If a party to this Agreement brings any action, including an action for
declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing
party shall be entitled to reasonable attorneys' fees in addition to any other relief to which
that party may be entitled. The court may set such fees in the same action or in a
separate action brought for that purpose.
10.2 Venue. In the event that either party brings any action against the other under this
Agreement, the parties agree that trial of such action shall be vested exclusively in the
state courts of California in the County of Alameda or in the United States District Court for
the Northern District of California.
10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so
adjudged shall remain in full force and effect. The invalidity in whole or in part of any
provision of this Agreement shall not void or affect the validity of any other provision of this
Agreement.
Consulting Services Agreement between
City of Dublin and R3 Consulting Group
February 20, 2007
Page 11 of 13
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1 0.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this
Agreement does not constitute a waiver of any other breach of that term or any other term
of this Agreement.
10.5 Successors and AssiQns. The provisions of this Agreement shall inure to the benefit of
and shall apply to and bind the successors and assigns of the parties.
10.6 Use of Recycled Products. Consultant shall prepare and submit all reports, written
studies and other printed material on recycled paper to the extent it is available at equal or
less cost than virgin paper.
10.7 Conflict of Interest. Consultant may serve other clients, but none whose activities within
the corporate limits of City or whose business, regardless of location, would place
Consultant in a "conflict of interest," as that term is defined in the Political Reform Act,
codified at California Government Code Section 81000 et seq.
Consultant shall not employ any City official in the work performed pursuant to this
Agreement. No officer or employee of City shall have any financial interest in this
Agreement that would violate California Government Code Sections 1090 et seq.
Consultant hereby warrants that it is not now, nor has it been in the previous twelve (12)
months, an employee, agent, appointee, or official of the City. If Consultant was an
employee, agent, appointee, or official of the City in the previous twelve months,
Consultant warrants that it did not participate in any manner in the forming of this
Agreement. Consultant understands that, if this Agreement is made in violation of
Government Code 91090 et.seq., the entire Agreement is void and Consultant will not be
entitled to any compensation for services performed pursuant to this Agreement, including
reimbursement of expenses, and Consultant will be required to reimburse the City for any
sums paid to the Consultant. Consultant understands that, in addition to the foregoing, it
may be subject to criminal prosecution for a violation of Government Code 9 1090 and, if
applicable, will be disqualified from holding public office in the State of California.
10.8 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or
interview related to this Agreement, either orally or through any written materials.
10.9 Contract Administration. This Agreement shall be administered by Roger Bradley,
Administrative Analyst ("Contract Administrator"). All correspondence shall be directed to
or through the Contract Administrator or his or her designee.
10.10 Notices. Any written notice to Consultant shall be sent to:
Attention: Richard J. Hutchinson
R3 Consulting Group
4811 Chippendale Drive, Suite 902
Sacramento, CA 95841
Consulting Services Agreement between
City of Dublin and R3 Consulting Group
February 20,2007
Page 12 of 13
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Any written notice to City shall be sent to:
Attention: Roger Bradley, Administrative Analyst
100 Civic Plaza
Dublin, CA 94568
10.11 Professional Seal. Where applicable in the determination of the contract administrator,
the first page of a technical report, first page of design specifications, and each page of
construction drawings shall be stamped/sealed and signed by the licensed professional
responsible for the report/design preparation. The stamp/seal shall be in a block entitled
"Seal and Signature of Registered Professional with report/design responsibility," as in the
following example.
Seal and Signature of Registered Professional with
report/design responsibility.
1 0.12 Inte~ration. This Agreement, including the scope of work attached hereto and
incorporated herein as Exhibit A, represents the entire and integrated agreement between
City and Consultant and supersedes all prior negotiations, representations, or agreements,
either written or oral.
CITY OF DUBLIN
CONSULTANT
RICHARD C. AMBROSE, CITY MANAGER
RICHARD J. HUTCHINSON, PRINCIPAL
Attest:
Fawn Holman, City Clerk
Approved as to Form:
Elizabeth H. Silver, City Attorney
F:\Waste\Franchise Audit\contract agreement-Waste Audit.doc
Consulting Services Agreement between
City of Dublin and R3 Consulting Group
February 20,2007
Page 13 of 13
F:IWastelFranchise Auditlcontract agreement-Waste Audit.doc
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EXHIBIT A
SCOPE OF SERVICES
Consulting Services Agreement between
City of Dublin and R3 Consulting Group--Exhibit A
February 20, 2007
Page 1 of 13
Project Understanding
The City of Dublin ("City") entered into an exclusive franchise with
Amador Valley Industries (AVI) that began on July 1, 2005 and
grants exclusive rights to provide solid waste collection services.
Under the terms of the franchise agreement, the City utilizes the
property tax bill to invoice the majority of residents for "base level"
collection services, while A VI bills for additional residential
services over the base level. In addition, AVI bills all commercial
accounts and those residential properties that may not be placed
on the annual tax bill.
Concurrent with the exclusive collection franchise, the City also
enacted a new Construction and Demolition Debris (C&D)
Ordinance allowing non-exclusive rights to individual haulers to
collect C&D materials. The exclusive and non-exclusive franchise
agreements require the haulers to pay a franchise fee (and
administrative fee in the case of the exclusive franchise
agreement) based on gross revenues from the provision of
collection services. In addition to the franchise fees, the exclusive
and non-exclusive agreements also require a minimum annual
diversion rate of 50%, and the non-exclusive agreements require
100% diversion of all concrete and asphalt collected within the
City.
Finally, the City entered into a Disposal Service Agreement that
became effective July 1, 2005 with Waste Management of
Alameda County, Inc.' (WMAC) to provide disposal capacity to
AVI, the City's collection service provider.
The objectives of this franchise fee and diversion audit generally
include the following:
· verify the franchise revenues collected by each franchisee
and evaluate the accuracy of franchise fees submitted to
the City in accordance with the terms of the appropriate
franchise agreement;
· review the operating statistics of each franchisee to gain
an understanding of past historical trends as they relate to
future diversion rates and franchise fee submittal
projections;
· review the billing procedures for the exclusive franchise
agreement to ensure accuracy of charges to residents,
which have services provided above the "base level";
· review the billing procedures for the exclusive franchise
agreement to ensure accuracy of charges to commercial
customers and those residents not billed by the City on the
tax bill;
Page 2 of 13
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Section 1
Scope of
Services
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The following information
, was used by R3 in the
preparation of this proposed
Scope of Services:
· R3's experience in
developing the exclusive
and non-exclusive
collection franchise
agreements for the City
· R3's experience in
developing the exclusive
disposal franchise
agreement for the City
· R3's experience in
conducting rate and
franchise audits of the
City's exclusive hauler as
part of services provided
to the City of Pleasanton
· The City's Request For
Proposals document
R3
Section 1 - 1
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Scope of
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· review the method used by each franchisee to quantify
their disposal, diversion, and recycling percentages;
· prepare a. technical report for Staff, assessing the
reasonableness and accuracy of methods used to quantify
diversion rates as well as the accuracy and
appropriateness of franchise fee submittals; and
· determine and document the disposal/diversion flow of
materials by material type.
In addition, the City has indicated that it may include a review of
the Disposal Service Agreement with WMAC in the scope of the
audit. In the event the City includes the review of the Disposal
Service Agreement, the objectives will include the following:
· review the accuracy of the gatehouse procedures used by
WMAC to assign disposal tonnages to the City;
· review and assess the reasonableness and accuracy of
the methodologies used by WMAC to quantify diversion
rates; ,
· review and assess the methodologies used by WMAC to
recover recyclable or compostable materials; and
· review and assess the accuracy of the disposal reporting
procedures used by WMAC.
In preparing our Project Approach, R3 has reviewed the exclusive
and non-exclusive Franchise Agreements. R3's overall approach
to project management is to complete the engagement with
minimal interruption to the City's staff and the service providers.
In addition, the following scope of services includes procedures
related to the Disposal Service Agreement. The cost of these
services has been presented separately as requested by the City.
Project Approach
R3's proposed Project Approach is presented below. We suggest
that the Project Approach be reviewed during the Kick-Off meeting
(Task 2) to ensure that all parties fully understand the project
scope, schedule, deliverables, expectations and communication
protocol.
Task 1
Objective -
Q3
Document Request and Review
To compile, review, and analyze data necessary to
form the basis of an exclusive and non-exclusive
franchise audit.
Upon authorization by the City, R3 will provide the City and the
collection and disposal service providers with a preliminary list of
required documents to perform the franchise fee and diversion
Section 1 - 2
Page 3 of 13
audit. This will allow the City and the service providers to
assemble the required documents so the Project Team can
immediately begin work.
A preliminary list of documents may include, but not be limited to,
the following items (from July 1, 2005 to December 31, 2006
unless otherwise noted):
From the City:
· signed exclusive and non-exclusive collection and disposal
franchise agreements and all amendments, if any;
· correspondence between the City and the service
providers regarding franchise fees or diversion issues;
· notices of violation of franchise agreements;
· reports of monthly franchise and administrative fees
received; and
· monthly, quarterly and annual reports prepared by the
collection and disposal service providers for the City under
the terms of the franchise agreements.
From AVI:
· financial statements;
· documentation to support the reports submitted to the City;
· subscription levels by customer type and service;
· list of residential customers billed for base level services;
· list of residential customers billed for collection services
over the base level;
· list of commercial customers;
· annual and monthly billing registers; and
· customer complaint log.
From non-exclusive franchise holders:
· financial statements;
· documentation to support the reports submitted to the City;
· annual and monthly billing registers for customers located
within and without the Dublin city limits;
· methodology used to determine if customers are located
within the Dublin city limits; and
· weight tickets.
From WMAC (Optional Task 6):
· financial statements;
· documentation to support the reports submitted to the City;
Page 4 of 13
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Scope of
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Q.3
Section 1 - 3
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Scope of
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· written documentation of the gatehouse procedures used
by WMAC to assign disposal tonnages to the City; .
· written documentation of the methodologies used by
WMAC to quantify diversion rates; and
· written documentation of the methodologies used by
WMAC to recover recyclable or compostable materials.
R3 understands the sensitive nature of this data and will work with
the service providers at their corporate offices to review the
material.
Deliverables
Task 1 includes the following deliverables:
· document request lists; and
· review of submitted documentation.
Task 2 Project Kick-off Meeting
Objective - To provide a common understanding of the project
objectives, review R3's project approach, schedule
and budget, and discuss data availability.
We propose to facilitate a Project Kick-off Meeting with R3 and
designated representatives of the City and the service providers,
as appropriate. We suggest that the Project Kick-off Meeting
initially begin with R3 and City Staff, and later invite the service
providers to join the meeting. This will allow R3 and the City to
discuss any outstanding issues regarding the project prior to their
arrival.
Deliverables
Task 2 includes the following deliverables:
· facilitation of Project Kick-off meeting with City Staff, and
then with Staff and service providers;
· meeting minutes distributed to all participants; and
· additional Data Request, as necessary.
Q3
Task 3 Franchise Fee Audit
Objective - To determine if service rates have been properly
calculated; if customers are charged the proper
service rate based on their service level; if service
rate revenues are properly recorded and accounted
for by the service providers; and if franchise and
administrative fees are properly calculated, paid and
received.
Section 1 - 4
Page 5 of 13
In order to meet this objective, our Project Approach includes the
following sequential steps.
Step 1: Test to verify that service subscribers are billed
the correct rate for the level of service provided.
(Task 3.2)
Step 2: Test to verify that the amounts billed to City
residents and businesses are correct, and that
the corresponding payments received by the
service providers are properly recorded in the
providers billing and accounting systems. (Task
3.3)
Step 3: Test to verify that the franchise and administrative
fees are calculated correctly, and are based on
the correct level of recorded revenues. (Task 3.4)
In developing the Project Approach for this Task, R3 has
anticipated that the City and the service providers will provide
unlimited access to all required financial and operational records.
In the event that access to the records is not granted or the
records are unavailable, the testing protocol will be modified to
include those records that are available, and the final report will
indicate the extent to which the scope of testing was limited. In
the event that a conclusion regarding the accuracy of the
revenues received by the City or regarding any of the other items
tested cannot be reached due to a lack of records, R3 will
document the limitations in the Final Report (Task 5).
Task 3.1 Sampling Plans
After the initial examination of the information and records
provided by the service providers and the City, R3 will prepare the
sampling plans ("plans"). In preparing the plans, R3 will perform
preliminary "reasonableness" testing to determine a statistically
significant sample-size for the franchise fee audits (e.g. number of
subscribers or transactions, as appropriate).
Task 3.2 Test of Subscribers
The purpose of this test is to allow R3 to determine the extent to
which residential and commercial subscribers are billed correctly
for the level of service provided, and if billings are consistent with
the appropriate rate schedule. The test of subscribers will include
the following items:
· A statistically significant sample of residential and
commercial subscribers will be selected for the test period.
The billing file for each subscriber will be reviewed to verify
Page 6 of 13
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Scope of
Services
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Section 1 - 5
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Scope of
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that the rate charged by the service provider corresponds
to the level of services provided, and that the billed rate is
consistent with the appropriate rate schedule.
· A statistically significant sample of Construction and
Demolition customers from each nonexclusive service
provider will be selected for the test period. R3 will test
each selected customer to determine if they are located
inside or outside of the City limits. R3 will then trace each
selected customer to the service providers' accounting
records to determine if the service revenues from the
customer were included in the franchise and administrative
fee calculation.
At the conclusion of these tests, R3 will make a determination of
the level of accuracy of the service provider subscriber billing
systems, and formulate suggestions as appropriate to improve the
accuracy of the systems.
Task 3.3 Test of Revenue Transactions
The purpose of this test is to determine if revenues from
subscription services are properly recorded in the service
providers accounting system. The test of revenue transactions
will include the following items:
· A statistically significant sample of residential and
commercial subscribers' transactions will be selected for
the test period. Each transaction will be tested to verify
that the billed amount and corresponding payment were
properly posted in the billing and accounting systems. In
the event that payments were not received, the test
procedure will include a review of the documentation of the
authorization to write-off the account as uncollectible.
At the conclusion of this test, R3 will make a determination of the
accuracy of the accounting and billing systems to record billed
receivables and payments, and will formulate suggestions as
appropriate to improve the accuracy of the system.
Q3
Task 3.4 Test of Franchise Fee Transactions
The purpose of this test is to determine if franchise and
administrative fees were properly calculated in accordance with
the terms of the franchise agreements. The test of franchise and
administrative fee transactions will include the following items:
· Due to the relatively small number of franchise fee
transactions in the test period, all franchise and
administrative fee payments will be selected for testing.
Section 1 - 6
Page 7 of 13
Each selected transaction will be tested to verify that the
calculation is based on the appropriate gross revenue and
franchise and administrative fee percentages. This
process will also include a verification of the number of
residential and commercial subscribers for the months
tested, by service level, to ensure that gross revenues
were calculated correctly by each service provider. Finally,
we will compare the calculated franchise and
administrative fee payments to the payments received by
the City.
At the conclusion of this test, R3 will make a determination of the
accuracy of the methodology used to calculate franchise and
administrative fees, and if franchise and administrative fees are
correctly paid and received as calculated.
Deliverables
Task 3 includes the following deliverables:
· sampling plans;
· on-site review and testing of service provider financial
records;
· financial model to calculate and verify annual rate
adjustments, gross revenues, and franchise and
administrative fees;
· a draft summary of findings;
· a meeting with City Staff to discuss the review findings and
recommendations;
· a meeting with the service providers to discuss the review
findings; and
· draft and Final Report as discussed in Task 5.
Task 4 Diversion Performance Review
Objective - To determine compliance with diversion
requirements, and to evaluate operating and
diversion trends
The Diversion Performance Review includes the following four
categories: 1) Diversion Methodology and Reporting Review; 2)
Operating and Diversion Trends Analysis; 3) Material Flow
Analysis; and 4) Report Comparison. R3 will utilize a variety of
methods in the execution of the Diversion Performance Review,
including analysis of relevant documents, on-site and field
observations, interviews, analysis of service provider data, and a
comparison of service provider data between the service
providers.
Page 8 of 13
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Scope of
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Section 1 - 7
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Scope of
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Task 4.1 Diversion Methodology and Reporting
Review
R3 will review the methodology used by each service provider to
document and quantify their disposal, diversion and recycling
tonnages. In order to conduct this portion of the review, R3 will
request that each service provider submit written documentation
of the methodology used for this process (See Task 1). In the
event written documentation does not exist R3 will meet with the
service provider and develop this documentation. R3 will use this
documentation to test the records of the service provider to
determine that the methodology is accurate and provides the
appropriate data.
To the extent necessary, R3 will provide recommendations for
improving the methodology used by each service provider to
quantify diversion statistics.
Task 4.2 Operating and Diversion Trends
Analysis
R3 will utilize the operating and diversion data provided as part of
Task 1 to perform trends analysis. In the event that unusual
trends are noted, R3 will discuss these observations with the
service provider to obtain an understanding of the fluctuations. R3
will incorporate this data into a financial model using MS Excel to
project possible future operating and diversion results.
To the extent necessary, R3 will prepare recommendations based
upon this analysis.
Q3
Task 4.3 Material Flow Analysis
R3 will review the material flow of each major type of material
collected by the service provider. In order to conduct this portion
of the review, R3 will request that each service provider submit
written documentation of the material flow (See Task 1). In the
event written documentation does not exist R3 will meet with the
service provider and develop this documentation. R3 will use this
documentation to test the records of the service provider to
determine that the methodology in use is accurate and provides
the appropriate data.
In addition, R3 will perform on-site tests to determine that the
materials are being recycled, diverted or disposed in accordance
with the material flow documentation.
Based on the results of these procedures and to the extent
necessary, R3 will make recommendations regarding potential
modifications to the material flow process.
Section 1 - 8
Page 9 of 13
Task 4.4 Report Comparison
R3 use the results of the previous tasks to validate the data
provided by the service providers in their monthly, quarterly and
annual reports. In the event that errors or inconsistencies have
been noted during the performance of these procedures, R3 will
meet with the appropriate service provider and City staff to
discuss the impact of the items. If necessary, R3 will restate the
data in the reports to account for those findings.
Oeliverables
Task 4 includes the following deliverables:
· updated diversion methodology documentation;
· diversion and operating trends model;
· updated material flow documentation; and
· draft comments and recommendations as appropriate.
Task 5
Objective -
Reports and Presentations
To clearly document the work performed on the
project, provide specific recommendations, and
present the information to City decision-makers.
R3 will prepare Draft and Final Reports that incorporate the work
performed in Tasks 1-4 (and Task 6 if requested by the City). R3
anticipates that the reports will include the following sections:
· Executive Summary;
· Methodology;
· Findings, conclusions and recommendations of the
Franchise Fee Audit (Task 3);
· Findings, conclusions and recommendations of the
Diversion Performance Review (Task 4); and
· Findings, conclusions and recommendations of the
Disposal Allocation Review (Optional Task 6).
Task 5.1 Progress Reports
R3 will prepare brief written progress reports for submittal to the
City beginning two weeks after the approval of the consultant
agreement and in bi-weekly increments thereafter. The progress
reports will summarize the progress during the reporting period
and will also include a list of any issues encountered and how they
were resolved.
Page 10 of 13
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Scope of
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Task 5.2 First Draft Report
R3 will prepare and submit four (4) copies of the Draft Report to
the City for review and comment. R3 believes that it would be
beneficial to meet with City staff once the draft report has been
reviewed to discuss the specifics behind the various findings and
recommendations and has included this meeting in the scope of
services.
Task 5.3 Second Draft Report
Within two (2) weeks of receiving comments from the City, the first
draft report will be revised, to the extent appropriate and issued to
the City and the service providers as the Second Draft Report.
Recipients of the report will be asked to provide written comments
within two (2) weeks of receipt.
Once the Second Draft Report has been reviewed and comments
have been received, R3 will facilitate up to three (3) meetings with
City staff and the service providers to discuss the report findings.
We anticipate that separate meetings will be held with the
exclusive collection provider, the nonexclusive collection providers
and the disposal provider.
Task 5.4 Final Draft Report
Based on the comments received and the results of the meetings
with City Staff and the service providers, R3 will prepare and
submit four (4) copies of the Final Draft Report to the City.
Task 5.5 Final Report
Once the Final Draft Report has been accepted by the City, R3
will prepare up to ten (10) hard copies and one (1) electronic copy
of the Final Report for submission to the City.
Task 5.6 Council Meeting and Presentation
R3 will present, or assist City Staff in the presentation of, the audit
findings and recommendations to the City Council. As part of this
task, R3 will assist staff in the preparation of the staff report and a
visual presentation using MS PowerPoint@. R3 will also prepare
up to ten (10) sets of color handout materials for this presentation.
1Z3
Deliverables
Task 5 includes the following deliverables:
· bi-weekly progress reports;
· one (1) meeting with City Staff to discuss the First Draft
Report;
Section 1 - 10
Page 11 of 13
· up to three (3) meeting with City Staff and
representatives of the service providers to discuss the
Second Draft Report;
· four (4) copies of the First Draft Report;
· up to Twenty (20) copies of the Second Report;
· four (4) copies of the Final Draft Report;
· one (1) hard copy of the Final Report;
· one (1) electronic copy of the Final Report;
Disposal Allocation Review (Optional)
To determine compliance with program
requirements, and to evaluate program
effectiveness and efficiencies
The Disposal Allocation Review includes the following four
categories: 1) Gatehouse Procedures Review; 2) Diversion Rate
Methodology Review; 3) Materials Recovery Review; and 4)
Report Comparison. R3 will utilize a variety of methods in the
execution of the Disposal Allocation Review, including analysis of
relevant documents, on-site and field observations, and
interviews.
Task 6
Objective -
Task 6.1 Gatehouse Procedures Review
R3 will review the methodology used by WMAC to determine and
document the origin of the material delivered to the disposal
facility by each of its customers. In order to conduct this portion of
the review, R3 will request that WMAC submit written
documentation of the methodology used for this process (See
Task 1). In the event written documentation does not exist R3 will
meet with WMAC and develop this documentation. R3 will use
this documentation and on-site evaluation procedures to test the
accuracy of the methodology.
Based on the results of these procedures and to the extent
necessary, R3 will make recommendations regarding potential
modifications to the gatehouse tonnage allocation methodology.
Task 6.2 Diversion Rate Methodology Review
R3 will review the methodology used by WMAC to calculate and
determine diversion rates for the materials received. In order to
conduct this portion of the review, R3 will request that WMAC
submit written documentation of the methodology used for this
process (See Task 1). In the event written documentation does
not exist, R3 will meet with WMAC and develop this
documentation. R3 will use this documentation along with the
reports submitted to the City and the internal records of WMAC to
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Scope of
Services
~3
Section 1 - 11
"I
Scope of
Services
review the accuracy of the methodology. This test will include a
recalculation of the diversion data provided to the City in the
monthly reports submitted by WMAC as required by the franchise
agreement.
Based on the results of these procedures, and to the extent
necessary, R3 will make recommendations regarding potential
modifications to this methodology.
Task 6.3 Materials Recovery Review
R3 will perform an on-site review of the methodologies used by
WMAC to recover recyclable and/or compostable material
delivered to the disposal facility. This task will include meeting
with disposal facility staff to discuss methodologies used to
maximize diversion of materials. In addition, R3 will trace selected
trucks from the gatehouse to the final disposition of the load. As
part of this procedure, R3 will examine the makeup of the load,
and document the portion, if any, that is, or should have been,
recovered.
Based on the results of these procedures and to the extent
necessary, R3 will make recommendations regarding potential
modifications to this process.
Task 6.4 Report Comparison
R3 will use the results of the previous tasks to validate the data
provided by WMAC in its monthly and annual reports to the City.
In the event that errors or inconsistencies have been noted during
the performance of these procedures, R3 will meet with WMAC
and City staff to discuss the impact of the items. If necessary, R3
will restate the data in the reports to account for those findings.
Deliverables
Task 6 includes the following deliverables:
· updated gatehouse documentation;
· updated diversion methodology;
· materials recovery documentation; and
· draft comments and recommendations as appropriate.
12.3
Section 1 - 12
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EXHIBIT A.
COMPENSATION SCHEDULE
F:\Waste\Franchise Audit\contract agreement-Waste Auditdoc
Consulting Services Agreement between
City of Dublin and R3 Consulting Group--ExhibitA
February 20,2007
Page 1 of 3
3\
Dublin Exclusive & Nonexclusive Franchise Audit
Project Budget Summary
Task Labor Labor Total
No. TasklSubtask Hours Cost Expense! Cost
1.00 Document Request & Review 18 $ 2,360 $ - $ 2,360
2.00 Project Kick-off Meeting 13 $ 1,710 $ 105 $ 1,815
3.00 Franchise Fee Audit
3.10 Sampling Plan 4 $ 480 $ - $ 480
3.20 Test of Subscribers 36 $ 4,420 $ 125 $ 4,545
3.30 Test of Revenue Transactions 24 $ 2,980 $ 125 $ 3,105
3.40 Test of FF Transactions 14 $ 1,730 $ 125 $ 1,855
Total Task 3 78 $ 9,610 $ 375 $ 9,985
4.00 Diversion Performance Review
4.10 Diversion Methodology & Reporting 28 $ 3,220 $ 125 $ 3,345
4.20 Operating & Diversion Trend Analysis 16 $ 1,900 $ 125 $ 2,025
4.30 Material Flow Analysis 44 $ 4,980 $ 125 $ 5,105
4.40 Report Comparison 14 $ 1,610 $ - $ 1,610
Total Task 4 102 $ 11,710 $ 375 $ 12,085
5.00 Reports & Presentations
5.10 Progress Reports 8 $ 960 $ 105 $ 1,065
5.20 First Draft Report 24 $ 2,640 $ 105 $ 2,745
5.30 Second Draft Report 14 $ 1,660 $ 315 $ 1,975
5.40 Final Draft Report 2 $ 265 $ - $ 265
5.50 Final Report 6 $ 485 $ - $ 485
5.60 Council Meetings & Presentations 16 $ 2,120 $ 150 $ 2,270
Total Task 5 70 $ 8,130 $ 675 $ 8,805
GRAND TOTALS TASKS 1 - 5 281 $ 33,520 $ 1,530 $ 35,050
Optional Task
6.00 Disposal Allocation Review
6.10 Gatehouse Procedures Review 18 $ 2,050 $ 250 $ 2,300
6.20 Diversion Rate Methodology Review 10 $ 1,170 $ - $ 1,170
6.30 Materials Recovery Review 10 $ 1,170 $ - $ 1,170
6.40 Report Comparison 10 $ 1,170 $ - $ 1,170
Total Optional Task 6 48 $ 5,560 $ 250 $ 5,810
GRAND TOTALS TASKS 1-6 329 $ 39,080 $ 1,780 $ 40,860
Page 2 of 3
R-3 Consulting Group
Billing Rates and Charges: January - December 2007 (Schedule S)
TECHNICAL SERVICES
Associate I
$145 per hour
$145 per hour
$145 per hour
$125 per hour
$120 per hour
$110 per hour
$90 per hour
$70 per hour
$55 per hour
Principal
Project Manager
Consultant
Senior Manager
Manager
Senior Associate
Associate II
Administrative Support
REIMBURSABLE COSTS
Consultants/Su bcontractors
cost
Lodging and meals
Travel - Private or company car
Other
cost
$0.485 per mile
cost
Delivery and other expenses
cost
PAYMENTS
Unless otherwise agreed in writing, fees will be billed monthly at the first of each
month for the preceding month and will be payable within 30 days of the date of
the invoice.
ESCALATION
Fees will be escalated annually in accordance with the change in the Consumer
Price Index.
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1/21/2005 V1